The loan from China Development Bank (CDB) will allow the FTSE 100 company to push ahead with its key Aktogay copper mine, helping it boost production by as much as 60pc to meet growing demand from China.

"We are delighted to be developing our relationship further with CDB. This funding will allow us to develop Aktogay and yet retain full ownership of the asset," said Oleg Novachuk, Kazakhmys chief executive.

The loan, to be finalised by the end of this year, comes as the company prepares for its dual listing this month on the Hong Kong Stock Exchange, a move designed to bring it closer the Chinese market that accounts for nearly 50pc of its sales.

Securing Kazakhstan's rich oil, gas and mineral reserves is a priority for the Chinese, and Mr Hu's visit follows March's state visit to Beijing by Kazakh president Nursultan Nazarbayev.

But the sale of resources to the Chinese is unpopular in the country, with opposition parties last month protesting agaisnt sales of oil and mining assets to the Chinese.

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"Chinese companies already control one-fifth of Kazakhstan's oil production and they are expanding their presence more and more," said Bulat Abilov, co-founder of the Azat party. "What's going on at the oilfields is a threat to the independence of the country and national security."

Kazakhmys in December 2009 secured a $2.7bn credit line from China Development Bank to fund Bozshakol, its other big new mine development.

In March, Kazakhmys said negotiations with China's Jinchuan Group over developing Aktogay as a joint venture had failed.